The bond issue is on top of its notes worth $300 million issued last year with a coupon rate of 7% and due in 2021. The previous bond issue was made to refinance debt taken by the entity—HT Global—for the acquisition of the stake in Hexaware. This was one of the rare leveraged buyout deals in India. The debt was, however, raised overseas.

HT Global will hold meetings or calls with fixed-income investors in Hong Kong and Singapore from Monday, a Hexaware spokesperson said.

According to credit rating firm Moody’s, the additional tap will help “raise an incremental $85 million of notes to pay a special dividend to Baring Private Equity Asia V Mauritius Holdings Ltd”.

Baring PE Asia did not respond to a request for comment.

HT Global said that it will use the proceeds from the fresh bond issue for topping up the interest reserve account to meet the pre-funding requirement in connection with the new issue and payment of fees and expenses for the issue besides the payment to its parent (Baring PE Asia).

HT Global owns 71% stake in Hexaware.

"While Hexaware reported robust revenues and EBITDA growth, as well as improvements in operating metrics in the past year, Moody's believes the debt-funded shareholder friendly initiative limits the financial flexibility available to it for growth initiatives," said Saranga Ranasinghe, vice president - analyst at Moody's Investors Service Singapore Pte.

In November 2013, Baring PE Asia hiked its stake in Hexaware by 20% to over 71% through an open offer to the shareholders of the company by spending an additional Rs 816 crore. Initially, it acquired 41.8 % from Hexaware founder Atul Nishar and General Atlantic, while also picking up an additional 9-10 % from ChrysCapital through market deals.

Founded in 1990, Hexaware provides support, integration, implementation and testing services across enterprise software systems, according to its website.